Just came across a report from the World Economic Forum late last year that undermines management’s defense that ignorance is bliss when it comes to the IoT.
Titled “Europe, Asia Lead the Way to the Factories of the Future,” (um, aside to US manufacturers: see any cause for concern in this headline?) it was the result of a long process by the WEF to identify “manufacturing lighthouses” addressing issues confronting manufacturers worldwide regarding investments in advanced technologies identified with Industry 4.0.
The 9 plants, culled from an initial list of 1,000 plus, enjoy 20-50% higher performance. Only one — 3D parts printer Radius — is from the US.
Earlier WEF research determined “that over 70% of businesses investing in technologies such as big data analytics, artificial intelligence or 3D printing are not able to take the projects beyond pilot phase.” To overcome that lapse, the participating companies have agreed to share their knowledge.
Here’s the risk to those who don’t take them up on the offer, according to Enno de Boer, McKinsey partner and global head of manufacturing at McKinsey & Company, which worked with the WEF on the project:
“The Fourth Industrial Revolution is real. Workers and management equally get augmented with technology. These pioneers have created factories that have 20-50% higher performance and create a competitive edge. …. They have agile teams with domain, analytics, IoT and software development expertise that are rapidly innovating on the shop floor. They have deployed a common data/IoT platform and have up to 15 use cases in action. They are thinking ‘scale’, acting ‘agile’ and resetting the benchmark.” (my emphasis)
Among the nine, several examples stood out:
- Bayer Biopharmaceutical (Garbagnate, Italy) capitalizes on the data it generates to cut maintenance costs 25% and increase operational efficiency.
-
Haier (Qingdao, China) uses AI to create a “user-centric mass customization model” with electronic products made on-demand. “Maintenance needs are predicted before incurring downtime via a remote AI supported, central intelligent service cloud platform.”
-
Phoenix Contact (Bad Pyrmont and Blomberg, Germany) cuts production time 30% by creating digital twins of each customer’s specs.
-
Siemens Industrial Automation Products (Chengdu, China) Why am I not surprised? — I suspect this is Siemens’ China analog of its Amburg “Factory of the Future” that I wrote about at length in The Future Is Smart: ‘Fully integrated technology platform for flexible production’ -Delivers ability to take customer orders and immediately allocate resources and schedule production time on a single, automated platform leading to 100% quality compliance and 100% traceability, while ensuring security and agility.”
However, I was particularly intrigued
Frequently companies reluctant to invest in the IoT cite their massive investments in legacy production equipment that doesn’t have M2M capacity as a barrier. However, J & J was able to cut operating cuts by 10% and reduce downtime by 5%. As a WEF spokesman told The Irish Times,
“The
Fourth Industrial Revolution doesn’t always mean newer, more expensive machines. Rather it can mean better communicating with and responding to the technologies you do have… By implementing simple internet-of-things devices across a range of machines that were never intended to ‘talk’ to each other, the Depuy Synthes factory created real-time digital twins of its factory equipment to monitor performance.”
Another of the nine, P & G’s Rakona plant in the Czech Republic, has also brought an existing plant up to date with the IoT. Built in 1875, it “can seamlessly change the product being manufactured with a push of a button, an innovation that reduced costs by 20% and upped output by a whopping 160%.”
Bottom line: it’s one thing for a brand-new plant in a brand new field such as the Radius 3D plant to profit from the IoT, but if an existing plant such as P & G Rakona’s one or one such as the J & J Depuy Synthes can add IoT capacity to existing “dumb” manufacturing equipment, you’re whistling in the dark if you don’t begin to create and execute an Industrial IoT strategy NOW.
